British households will see energy prices surge by 80% starting from October, the government regulator Ofgem announced on Friday. The annual price cap is set to be increased from the current level of £1,971 ($2,323) to £3,549 ($4,183).
According to Ofgem Chief Executive Jonathan Brearley, the hike will have a “massive impact” on families across the country, with another rise likely to come in January, reflecting high volatility in energy markets.
“The government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year,” Brearley said. “The response will need to match the scale of the crisis we have before us.”
Earlier this month, the regulator said it would adjust the cap quarterly rather than every six months due to intense pricing pressure in energy markets.
Commenting on the latest increase, Ofgem said it would not give projections for January, when the next cap will take effect, as the market is too volatile. However, the regulator warned that energy prices could get “significantly worse” through 2023.
The new average energy bills for households will nearly triple compared to October 2021, when they stood at £1,277 ($1,505). The price surge has been a major factor in UK inflation rising to a 40-year high.
For more stories on economy & finance visit RT’s business section
You can share this story on social media:
Image and article originally from www.rt.com. Read the original article here.